Spice Communications’ 40.8 per cent stake has been bought by Idea Cellular at Rs 77.30 per share. It was pronounced that 49 of the every 100 shares held will be handed out. An open offer of 20 per cent will be made to the shareholders of Spice Communications at the specified rate. Idea Cellular is going to pay an extra Rs 544 to the Chairman of Spice Communications BK Modi as a non-compete fee. A 14.99 per cent preferential allotment shares to Telekom Malaysia will be made by it at Rs 156.96 each share. Rs 96.60 per share is what works out as the sale price for promoters and this will include the non-compete fee as well.

The non-compete fee of Rs 544 Crore works out to Rs 19.30 per share for promoters. Spice Mobile happens to be a part of the Modi Group, with the promoters holding 63.2 per cent stake in the company. The Spice Corporation, on the other hand, holds 38.9 per cent whereas Omnia Investment holds 20.16 per cent stake in the company. The stock was buzzing as the market is of the opinion that Spice Mobile is going to see more investment from Spice Group. The company is bound to reap profit as it continues association with the Idea-Spice joint venture.